Taiwan president Ma Ying-Jeou presented to over 500 semiconductor industry leaders and diplomatic representatives from around the world at the SEMI Leadership Gala Dinner organized by SEMI Taiwan. Ma stated that for the past 20 years, the semiconductor industry has been an “economic bellwether for Taiwan, and a global powerhouse that has inspired tremendous pride for Taiwan.” The combined efforts of industry and government have built Taiwan into the world's second largest manufacturer of computer and electronics hardware, with over 70 percent share of global markets in semiconductor, optoelectronic, and ICT products.

The
output of Taiwan's semiconductor industry is still expected to remain steady at
about NT$ 1.62 trillion this year and is expected to reach more than NT$ 2
trillion in 2015. The annual growth of Taiwan semiconductor industry is
expected to outstrip the global semiconductor market growth to reach 6 percent
this year. In addition to semiconductor industry, the Taiwanese LED
manufacturing capacity accounts for 25 percent of the global total.

Taiwan’s Investment
Climate and Collaboration with the Semiconductor Industry

Ma
emphasized that the impressive technologies and supply capacity built up by
Taiwan's semiconductor manufacturers over a period of many years makes Taiwan
ideal partners for foreign firms. In
addition, an important and very tightly knit cooperative partnership has arisen
between Taiwan's semiconductor industry and international semiconductor
equipment and materials makers. For several years in a row, Taiwan's
semiconductor manufacturers have topped the world in the amount of their
equipment investments and material purchases.

On
the other hand, Ma stated that Taiwan's semiconductor industry has a number of
unique competitive advantages: a fully developed supply chain, superior R&D
capability, outstanding human resources, and a government that is moving
aggressively to create a high-quality investment environment to attract key
international semiconductor makers to Taiwan.

Four
of the world's five biggest semiconductor equipment makers have set up
operations at science parks in Tainan, Hsinchu, and Linkou. Applied Materials of the United States, for
example, has established the Tainan Manufacturing Center. Lam Research of the U.S.
has an Advanced Global Training Center in Hsinchu. ASML of the Netherlands has an ASML Center of
Excellence in Linkou. And Tokyo Electron
Limited has an R&D and assembly operation in Hsinchu. Other noteworthy developments include the
establishment of an R&D center by IMEC of Belgium, and plans by ASML to
develop next-generation exposure equipment technology here in Taiwan.

According to
Ma, Taiwan’s location makes it an ideal for international corporations to
establish their headquarters in Asia Pacific region. As the hub that connects
Europe, the U.S., Japan and the emerging Asian markets, Taiwan has high
economic and strategic value. Since the cross-strait relations have normalized
and trade between the two sides continues to grow, Ma stated that Taiwan is an
excellent choice for enterprises to enter into the Chinese market and to
further expand their business in the world.

Ma
encouraged multinational corporations “to collaborate with local Taiwanese
firms, bolstering R&D operations in Taiwan, stepping up
technical and training cooperation so that Taiwan can establish itself as a
regional R&D center within the Asia Pacific region.” SEMICON Taiwan organizers
invited Toshiba, Panasonic and Siltronic to Taiwan on purchasing missions, and
Ma stated his gratitude to these leading international manufacturers for their
support, and called on other manufacturers to invest in Taiwan and source
products there.

Green: Another
Highlight of SEMICON Taiwan

Ma
stated his concern that global warming and the energy crisis are “among the
biggest problems facing mankind in the 21st century,” which is why governments all
over the world are promoting the development of green energy and green
manufacturing to reduce carbon emissions. He recognized SEMICON Taiwan this year for
adding an LED Taiwan Pavilion, a Green Manufacturing Gallery, and a series of
international forums — all focusing on LED and green manufacturing.

Taiwan's
government launched a "Dawning Green Energy Industry Program," which
provides support for the development of seven green energy industries,
including LED lighting and solar power. By the year 2015, Ma expects that the
output of Taiwan's green energy industry to reach NT$ 1.15 trillion, making
this the latest addition to the list of "trillion dollar industries"
in Taiwan.

Conclusion

In
recent years, innovative new semiconductor technologies have driven the
development of new energy-saving products, such as LED lighting and solar
batteries. Ma stated that these breakthroughs demonstrate that semiconductors
have tremendous potential for new applications — and that rapidly growing base
of middle-class consumers in the world's emerging economies will drive business
opportunity for high-quality, low-cost products.

According
to Ma, the activities and discussions at SEMICON Taiwan help deepen connections
and strengthen cooperation between Taiwan's semiconductor firms and their
overseas counterparts — keeping us more aware of future developments and
business opportunities in the global marketplace.